Apollo Micro Q1FY27: consol PAT +43% YoY to ₹25 Cr; margins compress on IDL drag

On a consolidated basis (primary, and for the first time including subsidiaries Ananya SIP RF, Apollo Defence Industries and step-down IDL Explosives in the base), Apollo Micro Systems reported Q1 FY27 revenue of ₹251.3 Cr (+88.1% YoY, -14.3% QoQ) and PAT of ₹25.2 Cr (+42.6% YoY, -31.5% QoQ). Standalone (parent-only) revenue was ₹155.9 Cr (+16.7% YoY) with PAT of ₹27.8 Cr (+43.3% YoY). The QoQ declines on both bases are largely seasonal — Q4 (Jan-Mar) is the heaviest billing quarter for government/defence contractors, and the prior quarter's consolidated revenue of ₹293.3 Cr and PAT of ₹36.8 Cr were the year's peak.

Pre-result commentary (CompoundingAI) pegged the quarterly revenue pace needed to stay on the company's own 45-50% FY27 revenue-growth target at roughly ₹194-200 Cr on a standalone basis; actual standalone revenue of ₹155.9 Cr falls short of that bar — a miss against the run-rate the Street was watching. Consolidated revenue of ₹251.3 Cr looks stronger only because it now includes IDL Explosives and Apollo Defence Industries, which were not part of the group a year ago; the 88% consolidated YoY growth is therefore substantially inorganic, and standalone is the cleaner read on organic momentum. Management had separately flagged that FY26's 36% standalone growth was held back 8-9% by customer-approval timing delays it expected to normalise — this quarter's 16.7% standalone growth suggests that normalisation is still incomplete.

The stock went into the print at ₹403.85, up 1.4% over the past month of trading.

EPS: standalone basic ₹0.77 (vs ₹0.62 YoY) — consolidated basic ₹0.75 (vs ₹0.59 YoY) — up despite an 11%+ increase in the equity base from conversion of 1.43 Cr preferential share warrants.

The margin story diverges sharply by basis. Standalone operating margin was 31.0% this quarter, up from 29.4% last quarter and roughly flat versus 30.7% a year ago; standalone NPM of 17.9% is well above the 14.5% of Q1 FY26, albeit down slightly from 18.3% last quarter. At the consolidated level, however, OPM has fallen in three straight readings — 30.6% (Q1 FY26) to 23.1% (Q4 FY26) to 21.4% this quarter — and NPM followed the same path, 13.2% to 12.6% to 10.0%. The driver is IDL Explosives, first consolidated after its acquisition closed in November 2025: the step-down subsidiary added ₹95.4 Cr of revenue this quarter but only ₹0.41 Cr of PAT, a sub-1% net margin that dilutes an otherwise healthy parent-level profitability profile.